July 10, 2020 : GBP/USD Intraday technical analysis and trade recommendations.

Recently, Bullish breakout above 1.2265 has enhanced many bullish movements up to the price levels of 1.2520-1.2590 where temporary bearish rejection as well as a sideway consolidation range were established (In the period between March 27- May 12).

Shortly after, transient bearish breakout below 1.2265 (Consolidation Range Lower Limit) was demonstrated in the period between May 13 – May 26.

However, immediate bullish rebound has been expressed around the price level of 1.2080.

This brought the GBPUSD back above the depicted price zone of 1.2520-1.2600 which failed to offer sufficient bearish rejection.

Hence, short-term technical outlook has turned into bullish as well, further bullish advancement was expressed towards 1.2780 (Previous Key-Level) where signs of bearish rejection were expressed.

Short-term bearish pullback was expressed, initial bearish destination was located around 1.2600 and 1.2520.

Moreover, a bearish Head & Shoulders pattern (with potential bearish target around 1.2265) was recently demonstrated on the chart.

That’s why, bearish persistence below 1.2500 ( neckline of the reversal pattern ) paused the bullish outlook for sometime & enabled further bearish decline towards 1.1265.

However, significant bullish rejection around 1.2265 brought the GBP/USD pair back towards 1.2600 – 1.2620 where a cluster of resistance levels are located.

Signs of bearish rejection should be watched around the current price zone of 1.2550-1.2620 (recent supply zone) as it indicates a high probability of bearish reversal.

Trade recommendations :

Intraday traders can consider the current bullish pullback towards the depicted Supply Zone (1.2550-1.2620) for a valid SELL Entry.

Stop Loss should be placed above 1.2650 while T/P level to be located around 1.2450 & 1.2265.

The material has been provided by InstaForex Company – www.instaforex.com

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Author: MOKAR

Mula berdagang dalam pasaran forex sejak tahun 2003. Manakala pasaran bursa saham tempatan dan global pada tahun 2018. Menjadikan trading online sebagai kerjaya sepenuh masa pada tahun 2019. Kerjaya sebelum ini adalah seorang salesman kereta. Berpengalaman dengan pelbagai teknik dan perguruan tetapi akhirnya sangat serasi dengan teknik FMCBR @ Fibo Musang melalui guruku Cikgu Baha & Cikgu Zul.

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